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11/3/2021, 7:00 PM (Source: TeleTrader)
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Fed holds interest rates, announces tapering

The US Federal Reserve's Federal Open Market Committee (FOMC) announced on Wednesday that it unanimously decided to keep interest rates unchanged at the 0.00%-0.25% range. The FOMC also announced it will start tapering bond buying this month.

"In light of the substantial further progress the economy has made toward the Committee's goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities," the central bank said. "Beginning later this month, the Committee will increase its holdings of Treasury securities by at least $70 billion per month and of agency mortgage‑backed securities by at least $35 billion per month. Beginning in December, the Committee will increase its holdings of Treasury securities by at least $60 billion per month and of agency mortgage-backed securities by at least $30 billion per month," it added.

The Fed noted the progress on vaccination caused economic indicators to continue to improve. Reflecting on inflation, the bank noted it remains elevated due to "factors that are expected to be transitory."

Baha Breaking the News (BBN) / NP